First ever NFT seizure by HMRC

HMRC has made the first ever seizures of NFTs, according to The Telegraph, as fears rise about the criminals using the boom in digital art to launder their money.

As part of an investigation into an attempt to defraud the revenue of £1.4m, three Non-Fungible Tokens were seized along with crypto assets.

Three people were also arrested in the alleged VAT repayment fraud, said the newspaper. The suspects are accused of using stolen identities, pre-paid mobiles, false addresses and invoices, along with the pretence of being a legitimate business. HMRC is looking into 250 fake companies.

Nick Sharp, HMRC’s deputy director for economic crime, told The Telegraph: “We constantly adapt to new technology to ensure we keep pace with how criminals and evaders look to conceal their assets.”